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2007 (9) TMI 401 - HC - Companies LawWinding up - Exercise and control of liquidator’s powers - Held that:- The Official Liquidator has authority, inter alia, under section 460(4) of the Companies Act to refer a matter of the nature now referred to the court, though the form and the prayers in the summons may be inappropriate. Equally, the recovery officer has a right to apply under section 28(4) to this Court to seek transfer of the sale proceeds being held by the Official Liquidator. The matter relevant need to be considered if the recovery officer makes such an application. Since, a direction has been issued to the Official Liquidator without the concerned recovery officer resorting to section 28(4) of the 1993 Act, the Official Liquidator need not transmit any part of the sale proceeds held by him to such recovery officer. Jurisdiction is authority ordained by law. Jurisdiction is not a privilege; for if it were, there would be an element of choice about it. Assumption of jurisdiction follows a command by law. It is a duty cast on the judicial authority that cannot be abdicated by the whims of such judicial authority. The failure by a judicial authority to exercise jurisdiction vested in it by law is as illegal and as inexcusable as the usurpation of jurisdiction beyond its bounds of authority. The Official Liquidator need not transmit the sale proceeds held by him to the recovery officer of the DRT-II, Delhi. It will be open to such recovery officer to apply under section 28(4) of the 1993 Act, if he deems it fit.
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